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US President Donald Trump has announced new tariffs of 10% on an additional $ 300 billion of Chinese products as of September 1st.
This decision is the latest salvo in the escalation of the trade war between the two countries.
This happened after the last round of bilateral negotiations showed little sign of a breakthrough.
Investors reacted to the news with dismay. On Wall Street, the Dow Jones index fell about 1%.
Mr. Trump tweeted that the tariffs applied "to the remaining $ 300 billion of goods and products from China entering our country."
He also criticized China for not honoring its promises to buy more US agricultural products and attacked Chinese President Xi Jinping for failing to do more to curb sales of fentanyl, a synthetic opioid.
In later remarks, the president told reporters that the 10% tariff was a short-term measure and that tariffs could be increased in stages to more than 25%.
"Someone should have done that with China a long time ago," he added.
The new tax is expected to affect a wide range of products, from smartphones to children's clothing.
The latest round of tariffs comes from growing concern that Trump's strategy is proving counterproductive and hurting more in the US than in China.
The US Chamber of Commerce, which represents more than three million US companies, said the latest tariffs applied to China "would only exacerbate the consequences for businesses, farmers, workers and workers. US consumers and would undermine the strength of the US economy. " He urged both parties to remove all tariffs.
On Thursday, Trump's former chief economic advisor, Gary Cohn, said in an interview with the BBC that the tariff battle was having a "dramatic impact" on industry and capital investment in the United States. United.
The resulting tensions also influenced the US central bank, the Federal Reserve, which lowered interest rates on Wednesday for the first time in a decade.
Fed Chairman Jerome Powell said it was not up to the Fed to criticize US trade policy, but added that trade tensions had "almost erupted" between May and May. June.
US and Chinese negotiators wrapped up their last two-day meeting in Shanghai on Wednesday with little sign of progress, although the two countries described the talks as constructive.
Another round of negotiations is scheduled for September.
Trump's latest decision again highlighted the US-China trade war, eclipsing the news that a two-year deal to increase the US budget had lifted its last hurdle in Congress.
The agreement sets the government's spending at $ 1.37 trillion (£ 1.12 billion) for the next fiscal year, starting in the month of October.
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